The gap between modern retail businesses is getting shorter and shorter. Not price or convenience, but the following 6 factors are the deciding factors that bring success and differentiation to retail businesses in a fiercely competitive market:
– Marketing System
– Financial management
– Human resource management
– Distribution – warehousing and transportation services
– Customer service
Let's find out with Bellsystem24-Vietnam why the above 6 factors are "fatally" decisive to the development of retail businesses today.
1. Sales system in retail business
Under the pressure of competition in the 4.0 era, retail business is no longer simply a traditional form of offline buying and selling. The increasing demand for online shopping of the whole society is the key to the problem, forcing every business to consider opening its own online sales channel.
Source: Criteo
Thus, the key to success is to thoroughly apply and coordinate online and offline business to maximize customer contact and serve their increasing online shopping needs.
A typical example of a successful retailer – the VinMart/VinMart+ supermarket and convenience store system. Not only does it own a widespread store/supermarket system, VinMart also has its own shopping website Adayroi.com and most recently, it has launched the VinMart 4.0 supermarket service (online shopping and home delivery via smart catalogs and brochures with product QR codes).
Besides, foreign retailers such as Amazon or Apple are also typical successful names in combining online and offline sales, which have been applied in many places around the world.
According to experts' predictions, by 2020, about 301 million people will participate in online shopping, reaching 350 USD/person.
Along with the development of online sales channels, retail units need to strengthen their sales system management capacity. From warehouse data management software, customer information to customer care services during and after sales, all need to be fully and professionally invested. Especially customer care services and their information storage. (CRM system).
2. Combine multiple forms of Marketing
The more competitive the market is, the more important it is to invest and develop marketing. Along with expanding online and offline business, marketing methods also need to integrate both online and offline, not just traditional forms of communication as before.
Every modern retail business that wants to sustain growth needs to consider promoting multi-channel communications that are consistent and continuous.
Businesses must always remind customers of their value, differences and the benefits of using their services through communication channels and people.
When you know how to combine appropriate marketing methods/tools, you will save a lot of costs and increase business efficiency for your business. Of course, this requires understanding customers and the ability to execute systematic, professional plans from the staff of the retail business.
3. Financial management
The basis for the existence and development of a business lies in financial resources. Therefore, whether it is a retailer or any other business, the financial plan must be built in detail, the mechanism must be unified, suitable for the scale and model of the company.
The goal of a financial plan is always to maximize value for business owners: including profit after tax and return on equity. These values in modern times go deeper and aim at social responsibility: employee policies/salaries, labor safety, raising awareness of environmental protection, consumer protection, etc.
Retail businesses must balance their financial resources in business operations and social welfare, which is a must if you want to have a sustainable company.
4. Human resource management
While factors such as price, distribution service, location, convenience, etc. can all be imitated, human resources are something that no business can copy. Therefore, human resources are considered the most valuable asset of an organization or business today.
The trend is gradually shifting from “saving labor costs to reduce prices” to investing in human resources to maximize competitive advantage, profits and efficiency of all company services.
Businesses can apply some of the following basic principles to manage human resources more effectively such as:
– Invest in developing employees' personal capacity: to satisfy their development needs and create high productivity, work efficiency, and best contribution to the organization.
– Investing in human resource policy: helps satisfy both the material and spiritual needs of employees, helping them work enthusiastically
– Optimize the working environment: to stimulate employees to develop and maximize their skills
– The human resource function is also part of the business strategy of the enterprise: coordinating human resources and functions between departments is inseparable from the business plans and strategies of the retail company.
– Human resource management is the responsibility of all managers in the enterprise: It is not simply a task reserved for the head of the department/human resource department.
5. Distribution – warehousing and transportation services
If warehouses in traditional businesses are always a concern, in the present era, warehouses are no longer a concern.
Businesses can completely cut costs and resources from the transportation stage when using intermediary units - logistics in their delivery process. In particular, warehouse management becomes even easier when you can apply many warehouse management and sales management software that are widely circulated today.
And whether or not this system can be used effectively is also a problem whose solution lies in the retail business's ability to grasp advanced technology and science.
6. Customer service
Along with human resource management (internal care), customer care service is considered the key point to create a distinct advantage for a modern retail business.
When the products are equally diverse, the prices listed on the market are similar, the business location and the convenience of shopping are easily met, professional and thoughtful customer care service is what impresses customers and makes them most likely to return to your retail system.
You can apply loyalty card programs, store customer information to quickly notify events, great promotions from brands... When problems arise, customers receiving dedicated, professional advice from the customer care department will bring a different satisfaction experience to your customers compared to places that lack investment or investment is not systematic.
Although very important, many retailers today still do not have the proper respect for their customer care service. In the context of fierce competition, just one small mistake in the customer care process (including the stages of welcoming customers, processing orders, calling for advice, resolving questions, etc.), the retail business not only risks losing a customer but also losing many people in that person's relationship. The consequences can be even more serious when bad information about the retail unit is widely disseminated on the Internet and social networks.
As one of the first companies to provide professional solutions and services for Contact Center and BPO in Vietnam. With more than 13 years of experience, Bellsystem24-Vietnam has contributed to the success of many large retail units in Vietnam and internationally with its professional customer service training courses and comprehensive customer service solution system.
